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Kazakhmys approves sale of share in ENRC

Kazakhstan Materials 2 August 2013 17:53 (UTC +04:00)

Azerbaijan, Baku, Aug. 2 / Trend E. Kosolapova/

The independent shareholders of Kazakhstan's Metallurgical Corporation Kazakhmys PLC which holds a 26 percent share in Eurasian Natural Resources Corporation (ENRC) voted for sale of this share to ENRC major shareholders, Kazakhmys reported on Friday.

The decision was made at the company's general meeting.

Kazakhmys will receive $2.65 in cash plus 0.23 Kazakhmys shares per each ENRC share.

Based on the terms of the offer, Kazakhmys will receive approximately $887 million in cash and 77,041,147 Kazakhmys shares, which will substantially strengthen the group's financial position during the development phase of the Group's major copper growth projects in Bozshakol and Aktogay.

The offer provides the group with an opportunity to end its association with ENRC and will increase the size of the free float in the company to up to approximately 58 percent of the voting share capital of the company as a result of the Kazakh government or Eurasian Resources, as the case may be, no longer holding Kazakhmys Shares (or a greatly reduced stake in Kazakhmys), creating a majority free float and significantly enhancing liquidity in Kazakhmys shares.

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